Is The ‘Build-to-Rent’ Sector Set To Replace Buy-to-Let Landlords?
Since changes to the way the income generated by buy-to-let investment properties were announced by the government three years ago, most significantly a phasing out of mortgage interest payment being tax deductible, 120,000 private landlords have left the sector. At the same time, the escalating cost of home ownership, particularly hitting first time buyers who face a struggle to amass the size of deposit now required,
Another driver of the rental market is the growing mobility of the UK’s workforce. Professionals change their employer or position, and often location with it, with increasing regularity compared to previous generations. Owning a property can often, for this demographic, be seen as a constraint to professional development rather than the security it represented to their parents’ generation.
The developers behind the build-to-rent boom
There are 43,374 build-to-rent homes under construction in the UK and nearly 100,000 already built by the end of 2018. Of those under construction, 19,304 are in London and the other 24,010 outside of the capital. The biggest project under construction at present is a 5000
However, despite its rapid growth, the build-to-rent sector still only accounts for a small share of a rental
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